<SUBMISSION>
<ACCESSION-NUMBER>0000950123-10-009963
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>2
<PERIOD>20100204
<ITEMS>1.01
<ITEMS>9.01
<FILING-DATE>20100208
<DATE-OF-FILING-DATE-CHANGE>20100208
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>CHAMPION ENTERPRISES INC
<CIK>0000814068
<ASSIGNED-SIC>2451
<IRS-NUMBER>382743168
<STATE-OF-INCORPORATION>MI
<FISCAL-YEAR-END>0102
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>001-09751
<FILM-NUMBER>10581529
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>755 WEST BIG BEAVER ROAD
<STREET2>SUITE 1000
<CITY>TROY
<STATE>MI
<ZIP>48084
<PHONE>2486148200
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>755 WEST BIG BEAVER ROAD
<STREET2>SUITE 1000
<CITY>TROY
<STATE>MI
<ZIP>48084
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>k48843e8vk.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<HTML>
<HEAD>
<TITLE>e8vk</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>




<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>WASHINGTON, DC 20549</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM 8-K</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 18pt"><B>CURRENT REPORT<BR>
Pursuant to Section&nbsp;13 or 15(d) of the<BR>
Securities Exchange Act of 1934</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><!-- xbrl,dc --><B>Date of report (Date of earliest event reported): February&nbsp;8, 2010 (February&nbsp;4, 2010)</B><!-- /xbrl,dc --></DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>Champion Enterprises, Inc.</B>
</DIV>

<DIV align="center" style="font-size: 10pt"><DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></DIV>


<DIV align="center" style="font-size: 10pt">(Exact Name of Registrant as Specified in Its Charter)</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 12pt">Michigan<BR>
<DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></DIV>

<DIV align="center" style="font-size: 10pt">(State or Other Jurisdiction of Incorporation)</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top">1-9751
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">38-2743168</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(Commission File Number)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(IRS Employer Identification No.)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top">755 W Big Beaver Rd, Suite&nbsp;1000, Troy, Michigan
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">48084</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="3" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(Address of Principal Executive Offices)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Zip Code)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">(248)&nbsp;614-8200<BR>
<DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></DIV>

<DIV align="center" style="font-size: 10pt">(Registrant&#146;s Telephone Number, Including Area Code)</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV></DIV>

<DIV align="center" style="font-size: 10pt">(Former Name or Former Address, if Changed Since Last Report)</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy
the filing obligation of the registrant under any of the following provisions:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17
CFR 240.14d-2(b))</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17
CFR 240.13e-4(c))</TD>
</TR>

</TABLE>
</DIV>

<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">





<!--TOC-->
<!--/TOC-->




<!-- link1 "Item&nbsp;1.01. Entry into a Material Definitive Agreement" -->

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;1.01. Entry into a Material Definitive Agreement.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On
February&nbsp;4, 2010, the Bankruptcy Court entered an Order permitting the parties to enter a Third
Amendment to the DIP Credit Agreement and a Ninth Amendment to prepetition Credit Agreement. The
amendment was entered between Champion Home Builders Co. (&#147;Champion Homes&#148;), a wholly-owned
subsidiary of Champion Enterprises, Inc. (the &#147;Company&#148;), the Company and certain additional
subsidiaries of the Company and Credit Suisse AG, Cayman Islands Branch (&#147;Credit Suisse&#148;), as
Administrative Agent and Collateral Agent, and the lenders party thereto (the &#147;Lenders&#148;). The
Third Amendment to the DIP Credit Agreement and Ninth Amendment to the prepetition Credit Agreement
is effective as of January&nbsp;22, 2010. The total amount of the DIP Credit Agreement remains
unchanged.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The foregoing description of the Third Amendment to the DIP Credit Agreement and Ninth Amendment to
the prepetition Credit Agreement is qualified in its entirety by reference to the full text of the
amendment, which is filed as Exhibit&nbsp;10.1 hereto and is incorporated herein by reference.
</DIV>

<!-- link1 "Item&nbsp;9.01. Financial Statements and Exhibits" -->

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;9.01. Financial Statements and Exhibits.</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">Exhibit</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Number</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Third Amendment to the DIP Credit Agreement and Ninth Amendment to
the prepetition Credit Agreement</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<!-- link1 "SIGNATURES" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SIGNATURES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly
caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">CHAMPION ENTERPRISES, INC.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Roger K. Scholten
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Roger K. Scholten&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left" nowrap>Senior Vice President, General Counsel, and Secretary&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Date: February&nbsp;8, 2010
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>k48843exv10w1.htm
<DESCRIPTION>EX-10.1
<TEXT>
<HTML>
<HEAD>
<TITLE>exv10w1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><b>Exhibit 10.1</b>
</DIV>



<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><I>Execution Copy</I>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>THIRD AMENDMENT<BR>
TO DEBTOR-IN-POSSESSION CREDIT AGREEMENT AND<BR>
NINTH AMENDMENT TO THE PREPETITION CREDIT AGREEMENT</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS THIRD AMENDMENT TO DEBTOR-IN-POSSESSION CREDIT AGREEMENT AND NINTH AMENDMENT TO THE
PREPETITION CREDIT AGREEMENT, dated as of January&nbsp;22, 2010 (this &#147;<U>Amendment</U>&#148;), to the
Existing Credit Agreement (as defined below) and the Prepetition Credit Agreement (as defined in
the Existing Credit Agreement) respectively, is entered into among CHAMPION HOME BUILDERS CO., a
Michigan corporation (the &#147;<U>Borrower</U>&#148;), CHAMPION ENTERPRISES, INC., a Michigan corporation
(the &#147;<U>Parent</U>&#148;), certain of the Lenders (such capitalized term and other capitalized terms
used in this preamble and the recitals below to have the meanings set forth in, or are defined by
reference in <U>Article&nbsp;I</U> below), CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH, as the
Administrative Agent (in such capacity, the &#147;<U>Administrative Agent</U>&#148;), and each Obligor
signatory hereto.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">W I T N E S S E T H:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Borrower, the Parent, the Lenders and Credit Suisse AG, Cayman Islands Branch, as
the Administrative Agent, are all parties to the Debtor-in-Possession Credit Agreement, dated as of
November&nbsp;15, 2009 (as amended or otherwise modified prior to the date hereof, the &#147;<U>Existing
Credit Agreement</U>&#148;, and as amended by this Amendment and as the same may be further amended,
supplemented, amended and restated or otherwise modified from time to time, the &#147;<U>DIP Credit
Agreement</U>&#148;);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Lenders under the DIP Credit Agreement are also &#147;Lenders&#148; under, and as defined
in, the Prepetition Credit Agreement;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Debtors (all capitalized terms being used herein as defined in <U>Article&nbsp;I</U>
below), the other Obligors, the Administrative Agent and the Lenders desire to amend certain
provisions of the Existing Credit Agreement and the Prepetition Credit Agreement and are willing,
on the terms and subject to the conditions hereinafter set forth, to modify the Existing Credit
Agreement and the Prepetition Credit Agreement as set forth below.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE, the parties hereto hereby covenant and agree as follows:
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">ARTICLE I
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">DEFINITIONS
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 1.1. <U>Certain Definitions</U>. The following terms when used in this
Amendment shall have the following meanings (such meanings to be equally applicable to the
singular and plural forms thereof):
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Administrative Agent</U>&#148; is defined in the <U>preamble</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Amendment</U>&#148; is defined in the <U>preamble</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Authorized Actions</U>&#148; is defined in <U>Article&nbsp;VII</U>.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Borrower</U>&#148; is defined in the <U>preamble</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>DIP Credit Agreement</U>&#148; is defined in the <U>first recital</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Existing Credit Agreement</U>&#148; is defined in the <U>first recital</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Third Amendment Effective Date</U>&#148; is defined in <U>Article&nbsp;IV</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Parent</U>&#148; is defined in the <U>preamble</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 1.2. <U>Other Definitions</U>. Terms for which meanings are provided in the
Existing Credit Agreement are, unless otherwise defined herein or the context otherwise
requires, used in this Amendment with such meanings.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">ARTICLE II
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">AMENDMENTS TO EXISTING CREDIT AGREEMENT
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective on (and subject to the occurrence of) the Third Amendment Effective Date, the
provisions of the Existing Credit Agreement referred to below are hereby amended in accordance with
this <U>Article&nbsp;II</U>. Except as expressly so amended, the Existing Credit Agreement shall
continue in full force and effect in accordance with its terms.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.1. <U>Amendments to Section&nbsp;1.1</U>. <U>Section&nbsp;1.1</U> of the Existing
Credit Agreement is hereby amended by inserting the following definitions in the appropriate
alphabetical order:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;&#145;<U>Alternative Transaction</U>&#146; is defined in the definition of
&#147;Alternative Transaction Fee.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#145;<U>Acquisition&#146;</U> is defined in the definition of &#147;Purchaser.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#145;<U>Alternative Transaction Fee</U>&#146; means a break-up fee of
$3,000,000 payable to the New Equity Investors or their designees in the
event of consummation of a topping bid in the 363 auction or consummation of
an alternative plan of reorganization (other than following consummation of
the Acquisition described herein) (an &#147;<U>Alternative Transaction</U>&#148;),
which Alternative Transaction Fee shall be paid solely from the proceeds of
a topping bid in the 363 auction or as an administrative expense in the
context of an alternative plan of reorganization. The Alternative
Transaction Fee shall be subject to reduction such that Reimbursable
Expenses and the Alternative Transaction Fee do not, in the aggregate,
exceed $4,000,000.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#145;<U>Asset Purchase Agreement</U>&#146; means such agreement entered into to
effectuate the Acquisition.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->- 2 -<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#145;<U>DIP Modification Order</U>&#146; means the order of the Bankruptcy
Court approving the Third Amendment.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#145;<U>Expenses Claim</U>&#146; is defined in <U>Section&nbsp;8.21</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#145;<U>New Equity Investors</U>&#146; means certain of the proponents of a
joint credit bid to acquire substantially all of the assets of the Debtors
comprising Centerbridge Capital Partners, L.P., MAK Capital Fund LP, Sankaty
Credit Opportunities II, L.P., Sankaty Credit Opportunities III, L.P.,
Sankaty Credit Opportunities IV, L.P., and Sankaty Credit Opportunities IV
(Offshore Master), L.P.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#145;<U>Purchaser</U>&#146; means a new entity to be formed in order to
consummate the acquisition of substantially all of the assets and business
operations of Champion Enterprises, Inc., a Michigan corporation, and each
of its subsidiaries and affiliates that are debtors and
debtors-in-possession in <U>In re Champion Enterprises, Inc., et al</U>,
Case No.&nbsp;09-14019 (Bankr. D. Del. 2009) (the &#147;<U>Acquisition</U>&#148;).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#145;<U>Reimbursable Expenses</U>&#146; means any and all out-of-pocket fees
and expenses incurred by the Purchaser and New Equity Investors (including
the reasonable fees and disbursements of Latham &#038; Watkins LLP up to a
maximum amount of $75,000) in connection with the Acquisition and the
transactions contemplated by the Asset Purchase Agreement in an amount not
to exceed, when taken together with the Alternative Transaction Fee, $4
million.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#145;<U>Required DIP Lenders</U>&#146; means Lenders holding not less than
sixty percent (60%) of the Obligations after taking into account any
pass-through of voting pursuant to participation arrangements,
<U>provided</U> that such Lenders include at least two holders of
Obligations that are not affiliates of each other or of any of the New
Equity Investors.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#145;<U>Third Amendment</U>&#146; means the Third Amendment to
Debtor-in-Possession Credit Agreement and Ninth Amendment to the Prepetition
Credit Agreement, dated as of January&nbsp;22, 2010, to this Agreement and the
Prepetition Credit Agreement, respectively, among the Obligors, the Lenders
party thereto and the Administrative Agent.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#145;<U>Third Amendment Effective Date</U>&#146; means the Third Amendment
Effective Date as that term is defined in Article&nbsp;IV of the Third
Amendment.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.2. <U>Amendment to Article&nbsp;IV</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.2.1. Clause (ii)&nbsp;of <U>Section&nbsp;4.14</U> of the Existing Credit
Agreement is hereby amended by inserting the following at the end of such
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Section: &#147;other than to the extent, if any, such Superiority Claim may be
affected by the granting of an Expenses Claim.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.3. <U>Amendment to Article&nbsp;VI</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.3.1. <U>Section&nbsp;6.27(c)</U> of the Existing Credit Agreement is
hereby amended by deleting the period at the end of such Section and replacing
it with the following: &#147;and, except for claims and obligations payable to an
Agent in accordance with the Loan Documents, any Expenses Claim.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.4. <U>Amendment to Article&nbsp;VII</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.4.1. <U>Section&nbsp;7.18(a)(ii)</U> of the Existing Credit
Agreement is hereby amended by deleting the words &#147;January&nbsp;28, 2010&#148; appearing
therein and inserting in their place the words &#147;February&nbsp;8, 2010.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.5. <U>Amendment to Article&nbsp;VIII</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.5.1. Clause (a)&nbsp;of <U>Section&nbsp;8.21</U> of the Existing Credit
Agreement is hereby amended by deleting the words &#147;Carve-Out and the Third Party
Liens,&#148; appearing therein and inserting in their place the words &#147;Carve-Out, the
Third Party Liens and, subject and subordinate to the Carve-Out and claims,
indemnification, expenses or other obligations payable to an Agent or the DIP
Letter of Credit Issuer in accordance with the Loan Documents, any claim in
connection with payment or reimbursement of any Reimbursable Expenses to the New
Equity Investors or the Purchaser, to the extent payable in accordance with
Section&nbsp;12.3 hereof (an &#147;<U>Expenses Claim</U>&#148;).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.6. <U>Amendments to Article&nbsp;IX</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.6.1. <U>Section&nbsp;9.1.13</U> of the Existing Credit Agreement is
hereby amended by deleting the period at the end of such Section and replacing
it with the following: &#147;, other than the DIP Modification Order.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.6.2. <U>Section&nbsp;9.1.14</U> of the Existing Credit Agreement is
hereby amended by deleting the period at the end of such Section and replacing
it with the following: &#147;, other than the DIP Modification Order.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.7. <U>Amendment to Article&nbsp;X</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.7.1. <U>Section&nbsp;10.1</U> of the Existing Credit Agreement is
hereby amended by adding the following sentences at the end thereof:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&#147;Each Lender hereby agrees that in no event shall any Agent be
liable or responsible for any special, consequential, punitive,
incidental, exemplary or other similar damages or claims arising
in any way out of the Loan Documents, the transactions
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">contemplated thereby (including, without limitation, the matters
described in and contemplated by the third sentence of this
Section) or any action taken or not taken in connection
therewith. As used in the fifth, sixth, seventh and eighth
sentences of this Section, the term &#147;Agent&#148; shall mean and be
deemed to be a collective reference to each &#147;Agent, the DIP
Letter of Credit Issuer, and each of their respective present or
former subsidiaries, affiliates, advisors, employees, attorneys,
agents, officers, directors and representatives and their
respective predecessors, successors, transferees and assigns.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.8. <U>Amendment to Article&nbsp;XII</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.8.1. <U>Section&nbsp;12.3</U> of the Existing Credit Agreement is
hereby amended by adding the following paragraph as the penultimate paragraph
thereof:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;The Borrower further agrees to pay, on a super-priority
basis prior in right of payment to the payment of Obligations,
but subject and subordinate to the Carve-Out and claims,
indemnification, expenses or other obligations payable to an
Agent or the DIP Letter of Credit Issuer in accordance with the
Loan Documents, all fees and expenses in connection with an
Expenses Claim upon the occurrence of (i)&nbsp;a termination event
under the Asset Purchase Agreement caused by (a)&nbsp;failure of the
Bankruptcy Court to enter the Sale Order on or before March&nbsp;3,
2010, in form and substance acceptable to the New Equity
Investors in their sole discretion, (b)&nbsp;failure of the Purchaser
and Debtors to close the Acquisition on or before March&nbsp;18, 2010
(or a later date approved by the Debtors, the Required DIP
Lenders and all of the New Equity Investors), (c)&nbsp;failure of the
Debtors to assume or assign, all contracts designated to be, in
accordance with the procedures and terms to be agreed by the
parties in the Asset Purchase Agreement, (d)&nbsp;a Material Adverse
Change having occurred since the Reference Date (each as defined
in the Asset Purchase Agreement) or (e)&nbsp;failure of the Bankruptcy
Court to enter the DIP Modification Order, the payment of such
fees and expenses in connection with subsections (a), (b), (c)
and (e)&nbsp;conditioned upon the Purchaser having used commercially
reasonable efforts to endeavor that the requirements of such
subsections are satisfied, or (ii)&nbsp;consummation of an Alternative
Transaction.&#148;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">ARTICLE III
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">AMENDMENTS TO PREPETITION CREDIT AGREEMENT
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective on (and subject to the occurrence of) the Third Amendment Effective Date, the
provisions of the Prepetition Credit Agreement referred to below are hereby amended in accordance
with this Article&nbsp;III. Except as expressly so amended, the Prepetition Credit Agreement shall
continue in full force and effect in accordance with its terms.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.1. <U>Amendment to Article&nbsp;X</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.1.1. <U>Section&nbsp;10.1</U> of the Prepetition Credit Agreement is
hereby amended by adding the following sentences at the end thereof:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 8%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Each Lender hereby agrees that in no event shall the
Administrative Agent be liable or responsible for any special,
consequential, punitive, incidental, exemplary or other similar
damages or claims arising in any way out of the Loan Documents,
the transactions contemplated thereby (including, without
limitation, the matters described in and contemplated by Article
III of the Eighth Amendment) or any action taken or not taken in
connection therewith. As used in the seventh, eighth, ninth and
tenth sentences of this Section, the term &#147;Administrative Agent&#148;
shall mean and be deemed to be a collective reference to each of
the &#147;Administrative Agent, Synthetic Letter of Credit Issuer and
Revolving Letter of Credit Issuer, and each of their respective
present or former subsidiaries, affiliates, advisors, employees,
attorneys, agents, officers, directors and representatives and
their respective predecessors, successors, transferees and
assigns.&#148;
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">ARTICLE IV
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">CONDITIONS TO EFFECTIVENESS
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Amendment shall become effective upon the prior or simultaneous satisfaction of each of
the following conditions in a manner reasonably satisfactory to the Administrative Agent (the date
when all such conditions are so satisfied being the &#147;<U>Third Amendment Effective Date</U>&#148;):
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.1. <U>Counterparts</U>. The Administrative Agent shall have received
counterparts hereof executed on behalf of the Borrower, each other Obligor, the Required
Lenders and the Administrative Agent.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.2. <U>Certificate of Authorized Officer</U>. The Borrower shall have
delivered a certificate of an Authorized Officer, solely in his or her capacity as an
Authorized Officer of the Borrower and not in his or her individual capacity, certifying
that, both immediately before and after giving effect to this Amendment on the Third
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Amendment Effective Date, the statements set forth in <U>Article&nbsp;II</U> and
<U>Article&nbsp;III</U> hereof are true and correct.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.3. <U>Satisfactory Legal Form</U>. The Administrative Agent and its
counsel shall have received all information, and such counterpart originals or such
certified or other copies of such materials, as the Administrative Agent or its counsel may
reasonably request, and all legal matters incident to the effectiveness of this Amendment
shall be satisfactory to the Administrative Agent and its counsel. All documents executed
or submitted pursuant hereto or in connection herewith shall be reasonably satisfactory in
form and substance to the Administrative Agent and its counsel.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.4. <U>Costs and Expenses, etc</U>. The Administrative Agent shall have
received all fees, costs and expenses due and payable pursuant to <U>Section&nbsp;12.3</U> of
the Existing Credit Agreement (including without limitation the fees and expenses of Willkie
Farr &#038; Gallagher LLP, special counsel to the Administrative Agent), if then invoiced and to
the extent such payment is in compliance with the applicable provisions of the Final Order.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.5. <U>Entry of Bidding Procedures Order and DIP Modification Order</U>. In
the case of <U>Sections&nbsp;2.2</U>, <U>2.3</U>, <U>2.5</U>, <U>2.6</U> and <U>2.8</U>
hereof, the Bidding Procedures Order and DIP Modification Order, each in form and substance
reasonably satisfactory to the Debtors, Required DIP Lenders, all of the New Equity
Investors and Administrative Agent, shall have been entered by the Bankruptcy Court.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">ARTICLE V
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">REPRESENTATIONS AND WARRANTIES
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To induce the Lenders to enter into this Amendment, the Borrower and each other Obligor
represent and warrant to the Lenders as set forth below.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 5.1. <U>Validity, etc</U>. This Amendment and the DIP Credit Agreement
(after giving effect to this Amendment) each constitutes the legal, valid and binding
obligation of the Borrower and such applicable Obligors enforceable in accordance with its
terms subject to the effects of bankruptcy, insolvency, fraudulent conveyance,
reorganization, moratorium and other similar laws relating to or affecting creditors&#146; rights
generally, general equitable principles (whether considered in a proceeding in equity or at
law) and an implied covenant of good faith and fair dealing.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 5.2. <U>Representations and Warranties, etc</U>. Both before and after
giving effect to this Amendment, the statements set forth in clause (a)&nbsp;of <U>Section
5.2.1</U>, and after giving effect to this Amendment, the statements set forth in clause (b)
of <U>Section&nbsp;5.2.1</U>, in each case of the Existing Credit Agreement, are true and
correct.
</DIV>


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<DIV align="center" style="font-size: 10pt; margin-top: 18pt">ARTICLE VI
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">CONFIRMATIONS AND COVENANTS
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 6.1. <U>Guarantees, Security Interest, Continued Effectiveness</U>. Each
Obligor hereby reaffirms, as of the Third Amendment Effective Date, that immediately after
giving effect to this Amendment (a)&nbsp;the covenants and agreements made by such Obligor
contained in each Loan Document to which it is a party, (b)&nbsp;with respect to each Obligor
party to a Guaranty, its guarantee of payment of the Obligations pursuant to such Guaranty
and (c)&nbsp;with respect to each Obligor party to the Pledge and Security Agreement or a
Mortgage, its pledges and other grants of Liens in respect of the Obligations pursuant to
any such Loan Document, in each case, as such covenants, agreements and other provisions may
be modified by this Amendment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 6.2. <U>Validity, etc</U>. Each Obligor (other than the Borrower) hereby
represents and warrants, as of the Third Amendment Effective Date, that immediately after
giving effect to the Amendment, each Loan Document, in each case as modified by this
Amendment (where applicable and whether directly or indirectly), to which it is a party
continues to be a legal, valid and binding obligation of such Obligor, enforceable against
such party in accordance with its terms subject to the effects of bankruptcy, insolvency,
fraudulent conveyance, reorganization, moratorium and other similar laws relating to or
affecting creditors&#146; rights generally, general equitable principles (whether considered in a
proceeding in equity or at law) and an implied covenant of good faith and fair dealing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 6.3. <U>Representations and Warranties, etc</U>. Each Obligor (other than the
Borrower) hereby represents and warrants, as of the Third Amendment Effective Date, that
before and after giving effect to this Amendment, the representations and warranties set
forth in each Loan Document to which such Obligor is a party are, in each case, true and
correct (a)&nbsp;in the case of representations and warranties not qualified by references to
&#147;materiality&#148; or a Material Adverse Effect, in all material respects and (b)&nbsp;otherwise, in
all respects, in each case with the same effect as if then made (unless stated to relate
solely to an earlier date, in which case such representations and warranties shall be true
and correct in all material respects as of such earlier date).
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">ARTICLE VII
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">MISCELLANEOUS
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 7.1. <U>Cross-References</U>. References in this Amendment to any Article or
Section are, unless otherwise specified, to such Article or Section of this Amendment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 7.2. <U>Loan Document Pursuant to Existing Credit Agreement</U>. This
Amendment is a Loan Document executed pursuant to the Existing Credit Agreement and shall
(unless otherwise expressly indicated therein) be construed, administered and
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">applied in accordance with all of the terms and provisions of the Existing Credit
Agreement, as amended and modified hereby, including <U>Articles X</U> and <U>XII</U>
thereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 7.3. <U>Successors and Assigns</U>. This Amendment shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and assigns.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 7.4. <U>Counterparts</U>. This Amendment may be executed by the parties
hereto in several counterparts, each of which when executed and delivered shall be an
original and all of which shall constitute together but one and the same agreement.
Delivery of an executed counterpart of a signature page to this Amendment by facsimile (or
other electronic transmission) shall be effective as delivery of a manually executed
counterpart of this Amendment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 7.5. <U>Governing Law</U>. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK IN THE SAME MANNER AS
PROVIDED FOR IN THE DIP CREDIT AGREEMENT.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 7.6. <U>Full Force and Effect; Limited Amendment</U>. Except as expressly
amended hereby, all of the representations, warranties, terms, covenants, conditions and
other provisions of the Existing Credit Agreement and the Loan Documents shall remain
unchanged and shall continue to be, and shall remain, in full force and effect in accordance
with their respective terms. The amendment and modifications s set forth herein shall be
limited precisely as provided for herein to the provisions expressly amended or modified
herein and shall not be deemed to be an amendment to, waiver of, consent to or modification
of any other term or provision of the Existing Credit Agreement or any other Loan Document
or of any transaction or further or future action on the part of any Obligor which would
require the consent of any Lenders, the Administrative Agent, or the DIP Letter of Credit
Issuer under the Existing Credit Agreement or any of the Loan Documents.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 7.7. <U>No Waiver</U>. This Amendment is not, and shall not be deemed to be,
a waiver or a consent to any Event of Default, event with which the giving of notice or
lapse of time or both may result in an Event of Default, or other non-compliance now
existing or hereafter arising under the DIP Credit Agreement and the other Loan Documents,
except as expressly provided for in <U>Article&nbsp;II</U> hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 7.8. <U>Obligor Releases/Damages and Liability Limitations</U>. Although each
Lender and the Administrative Agent each regards its conduct as proper and does not believe
that any Obligor has any claim, right, cause of action, offset or defense against such
Lender, the Administrative Agent, the DIP Letter of Credit Issuer or any other Lender Party
(for purposes of this paragraph, defined as, &#147;each Lender, the Administrative Agent, DIP
Letter of Credit Issuer and each of their present or former subsidiaries, affiliates,
advisors, employees, attorneys, agents, officers, directors and representatives and their
respective predecessors, successors, transferees and assigns&#148;) in connection with the
execution, delivery, performance and ongoing administration of, or
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">the transactions contemplated by, the DIP Credit Agreement and the other Loan
Documents, each Lender, the Administrative Agent and each Obligor agree to eliminate any
possibility that any past conduct, conditions, acts, omissions, events, circumstances or
matters of any kind whatsoever could impair or otherwise affect any rights, interests,
contracts or remedies of the Lenders, the Administrative Agent or any other Lender Party.
Therefore, each Obligor, on behalf of itself and its employees, agents, officers, directors,
representatives, predecessors, successors, transferees and assigns, unconditionally, freely,
voluntarily and, after consultation with counsel and becoming fully and adequately informed
as to the relevant facts, circumstances and consequences, knowingly releases, waives and
forever discharges (and further agrees not to allege, claim or pursue) (a)&nbsp;any and all
liabilities, indebtedness and obligations, whether known or unknown, of any kind whatsoever
of any Lender Party to any Obligor, except for any obligations remaining to be respectively
performed by the Lenders as expressly set forth in this Amendment, the DIP Credit Agreement
and the other Loan Documents, (b)&nbsp;any legal, equitable or other obligations of any kind
whatsoever, whether known or unknown, of any Lender Party to any Obligor (and any rights of
any Obligor against any Lender Party) other than any such obligations expressly set forth in
this Amendment, the DIP Credit Agreement and the other Loan Documents, (c)&nbsp;any and all
claims, whether known or unknown, under any oral or implied agreement with (or obligation or
undertaking of any kind whatsoever of) any Lender Party which is different from or in
addition to the express terms of this Amendment, the DIP Credit Agreement and the other Loan
Documents and (d)&nbsp;all other claims, rights, causes of action, counterclaims or defenses of
any kind whatsoever, in contract or in tort, in law or in equity, whether known or unknown,
direct or derivative, which such Obligor or any predecessor, successor or assign might
otherwise have or may have against any Lender Party on account of any conduct, condition,
act, omission, event, contract, liability, obligation, demand, covenant, promise,
indebtedness, claim, right, cause of action, suit, damage, defense, circumstance or matter
of any kind whatsoever which existed, arose or occurred at any time prior to the Third
Amendment Effective Date. The Obligors further understand and agree that none of the
Lenders, the Administrative Agent, DIP Letter of Credit Issuer or any other Lender Party
shall at any time, whether heretofore, on or as of the Third Amendment Effective Date or
thereafter, be liable or responsible for any special, consequential, punitive, incidental,
exemplary or other similar damages or claims arising in any way out of the Loan Documents,
the transactions contemplated thereby or any action taken or not taken in connection
therewith. Each Lender Party hereby further agrees that the Administrative Agent shall not
have any liability or responsibility whatsoever, and shall be fully protected and exculpated
from and against, any action taken or not taken by it at the direction of, or authorized by,
the Required Lenders, including any such action authorized hereunder, or any action taken in
connection therewith (&#147;<U>Authorized Actions</U>&#148;). <U>Section&nbsp;10.3</U> of the DIP Credit
Agreement shall apply to this Amendment and all Authorized Actions, except that it is
understood and agreed that all Authorized Actions shall be deemed not to constitute gross
negligence or willful misconduct.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 7.9. <U>Approval of DIP Budget</U>. Pursuant to <U>Section&nbsp;7.17</U> of the
Existing Credit Agreement, the Required Lenders hereby approve and consent to the updated
DIP Budget, dated January&nbsp;2010, a summary of which is attached hereto as Exhibit&nbsp;A.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->- 10 -<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 7.10. <U>Parties Acting in Dual Capacities</U>. The Borrower, the
Administrative Agent, each Lender, each Obligor and each other party hereto agrees and
acknowledges that it has consented to, executed and delivered the foregoing Amendment in its
capacity as such under both the DIP Credit Agreement and the Prepetition Credit Agreement.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">&#091;signature pages follow&#093;
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->- 11 -<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the parties hereto have executed and delivered this Amendment as of the
date first above written.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">CHAMPION HOME BUILDERS CO.<BR>
CHAMPION ENTERPRISES, INC.<BR>
CHAMPION ENTERPRISES MANAGEMENT CO.<BR>
CHAMPION RETAIL, INC.<BR>
HIGHLAND ACQUISITION CORP.<BR>
HIGHLAND MANUFACTURING COMPANY LLC<BR>
HOMES OF MERIT, INC.<BR>
NEW ERA BUILDING SYSTEMS, INC.<BR>
NORTH AMERICAN HOUSING CORP.<BR>
REDMAN HOMES, INC.<BR>
SAN JOSE ADVANTAGE HOMES, INC.<BR>
STAR FLEET, INC.<BR>
WESTERN HOMES CORPORATION<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>

    <TD valign="top" colspan="2">Name:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>

    <TD valign="top" colspan="2">Title:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><I>Signature Pages to Third Amendment to DIP Credit Agreement<BR>
and Ninth Amendment to Prepetition Credit Agreement</I>
</DIV>




<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left" nowrap>CREDIT SUISSE AG, CAYMAN ISLANDS <BR>

BRANCH,
as
Administrative Agent and Lender<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>

    <TD valign="top" colspan="2">Name:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>

    <TD valign="top" colspan="2">Title:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>

    <TD valign="top" colspan="2">Name:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>

    <TD valign="top" colspan="2">Title:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><I>Signature Pages to Third Amendment to DIP Credit Agreement<BR>
and Ninth Amendment to Prepetition Credit Agreement</I>
</DIV>




<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left" style="border-top: 1px solid #000000">&#091;INSERT NAME OF LENDER&#093;<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>

    <TD valign="top" colspan="2">Name:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>

    <TD valign="top" colspan="2">Title:&nbsp;&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><I>Signature Pages to Third Amendment to DIP Credit Agreement<BR>
and Ninth Amendment to Prepetition Credit Agreement</I>
</DIV>




<P align="center" style="font-size: 10pt"><!-- Folio --><!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="right" style="font-size: 10pt; margin-top: 12pt">EXHIBIT A
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>DIP BUDGET SUMMARY</B></U>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio --><!-- /Folio -->
</DIV>



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